NEW YORK (TheStreet) -- Taiwan Semiconductor (TSM) shares are down -1.6% to $20.59 in trading on Thursday after its chairman announced that the company will lose out to competitors in the 14nm and 16nm process segment next year.
The company expects that its 16nm products will account for a single digit ratio to its overall revenue during the third quarter with rival Samsung (SSNLF) poised to take the lead in the segment.
Taiwan Semiconductor forecast record third quarter revenues between $6.85 billion to $6.95 billion despite the expected loss in 16nm market share.
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TheStreet Ratings team rates TAIWAN SEMICONDUCTOR MFG CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TAIWAN SEMICONDUCTOR MFG CO (TSM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows: